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Set Instant Pot to Sauté function and melt butter. Add onion and cook until soft, 5 minutes, then add garlic and thyme and cook until fragrant, 1 minute more. Add potatoes and broth and place lid on Instant Pot. Set to Pressure Cook on High and set time for 8 minutes. Once finished, turn valve to quick release. In a small bowl whisk together 2 tablespoons milk and cornstarch to make a slurry. Remove lid from Instant Pot and set to Sauté function again. Pour in slurry, remaining 1 cup milk, and heavy cream and let boil about 5 minutes, stirring constantly. Season with salt and pepper to taste. Garnish with cheddar, bacon, and chives before serving.